A New Crypto ETF Launches - InvestingChannel

A New Crypto ETF Launches

Last week, a new exchange-traded fund (ETF) for crypto enthusiasts launched: Bitwise Crypto Industry Innovators ETF (NYSE:BITQ). The new fund promises to give investors a way to bet on crypto without actually having to hold it. It avoids the hassle of determining which cryptocurrency to hold, where to buy it and how to store it. Through the ETF, investors can gain all that exposure and diversification.

There are 30 holdings in the fund right now, with the largest being Coinbase Global (NASDAQ:COIN), which accounts for 11.7% of the ETF’s total weight. MicroStrategy (NASDAQ:MSTR) also makes up a significant chunk at 8.8%.

The fund will rebalance on a quarterly basis but investors can expect it to be made up mainly of companies that are heavily involved in crypto. According to the press release announcing the fund’s launch, “In most cases, companies in the new index derive at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holdings of liquid cryptoassets.”

And what’s exciting for crypto investors is that they won’t have to wait long before a new issue becomes eligible for inclusion in the fund’s holdings. Stocks can be added to the index just done day after they debut on the markets.

The new ETF has an expense ratio of 0.85%, which is on the high end when compared to other funds. However, given the rapid ascent of Bitcoin and other cryptocurrencies this year, that fee may prove to be minimal if crypto values continue to surge.

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